WTO
A PRESENTATION TO KFUPM
OCT 18, 2003
FAWAZ AL-ALAMY
DEPUTY MINISTER OF COMMERCE & INDUSTRY
KINGDOM OF SAUDI ARABIA
contents
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What is the WTO
Accession process
Bilateral negotiations
1. Goods 2. Services
Multilateral issues
1. WPR 2. COMMITMENTS
Legislation
The SWOT Analysis
A “Cost-Benefit” Analysis
WHAT IS THE WTO
1
THE THIRD SIDE OF THE TRIANGLE
WB
The
Bretton Woods
Institutions
2
WTO
IMF
A GLOBAL VILLAGE
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GATT 47 , ONLY 27 CONTRACTING PARTIES
WTO 95 , 129 MEMBER COUNTRIES
GATT , GATS , TRIPS & TRIMS
TODAY , 148 COUNTRIES CONTROL :
80% OF WORLD TRADE
90% OF FINANTIAL TRANSACTIONS
92% OF TELECOM & IT
97% OF IPR’s
A MEMBER-DRIVEN ORGANIZATION
UNLIKE OTHER WORLD ORGANIZATIONS
 IDEAS – INNITATIVES – AGREEMENTS
 28 AGREEMENTS & INNITIATIVES
 SINGLE UNDERTAKING PRINCIPLE
 4 PILARS ;
1. MARKET ACCESS
2. NATIONAL TREATMENT
3. MFN & RECIPROCITY
4. TRANSPARENCY & PREDICTABILITY
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A BORDERLESS WORLD
WTO
COUNTRIES
K SA
Market Access
&
National
Treatment
MFN Principle
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THE ACCESSION PROCESS
THE ART OF NEGOTIATION
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CODIFIED GLOBALIZATION
Protocol of Accession
Bilateral
Negotiations
29 Agreement
14 Signed
Multilateral
Issues
Legislation
WP Report
TRIPS
Commitment Para's
Customs
Valuation
TBT & SPS
7
Import Licensing
BILATERAL NEGOTIATIONS
THE CONFRONTATION
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GOODS (GATT94)
7054 AGRI & NON-AGRI PRODUCTS :
1. ITA, 219 LINE ITEMS
2. CHEMICAL HARMONIZATION
3. ZERO-FOR-ZERO INNITIATIVE
( pharmaceuticals, equipment, steel,
wood, cotton, toys, fish & paper )
4. ARTICLE 20 OF GATT 94
( health, environment, security, religious )
 11 OTHER SISTER AGREEMENTS
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GOODS OFFERS
60%
50%
40%
Average
Rate
30%
20%
Requests
10%
0%
10
1st
2nd
3rd
CU
1997
1998
1999
2003
SERVICES (GATS)
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12 MAJOR SECTORS WITH;
155 Sub-sectors & 620 Activities In:
Business, Telecom, Distribution, Tourism,
Education, Banking, Insurance, Recreation,
Transportation, Environmental, Engineering,
Health, Audio-visual & Other Services
Market Access & National Treatment
GATS is the most complicated agreement of WTO
Market Access ( Services )
1) Cross Border Supply
Bound
2) Consumption Abroad
None
3) Commercial Presence
4) Movement of Natural Persons
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Unbound*
Unbound
SERVICES OFFERS
100%
85%
72%
Market
Access
50%
86%
66%
44%
0%
Bahrain
13
1995
Oman
1999
Jordan
2001
China
2001
KSA
2002
THE ELECTRONIC TAP
+
SERVICES
I TA
+
Telecom
Agreement
Zero Tariff
+
Nominal Cost
GOODS
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Pervasive Computing
MULTILATERAL ISSUES
THE BATTLE OF IDEAS
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WORKING PARTY REPORT
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A FACTUAL SUMMERY OF THE WP Meetings
ANSWERS TO QUESTIONS RELATED TO:
1. INDUSTRY, TRADE & AGRICULTURE
2. PRIVATIZATION & STATE TRADING
3. TAXES, DUTIES, CHARGES & AMS
4. SUBSIDIES, PRICING & LICENCING
5. INVETMENT & ENT MEASURES
6. ENFORCEMENT, DUE PROCESS
7. STANDARDS & SPECIFICATIONS
COMMITMENTS
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NOTIFICATIONS WITHOUT FLEXIBILITIES
ACC4, ACC5 & ACC8
TRANSPARENCY & PREDICTABILITY
ENFORCEMENT & IMPLIMENTATION
PLURILATERAL MATTERS
TRADING ARRANGEMNTS
BUSINESS & FISCAL POLICIES
LEGISLATION
THE AGONY OF REFORM
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THE NEW RULES OF THE GAME
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IPR LAWS:
1. TRADE MARKS 2. TRADE NAMES
3. COMMERCIAL DATA 4. COPYRIGHT 5. PATENTS
6. INT CIRCUITS LAYOUT & INDUSTRIAL DESIGNS
7. PLANT VARIETIES 8. COMPETITION
9. BORDER MEASURES
IMPORT LICENCING
SANITARY & PHYTOSANITARY MEASURES
TECHNICAL BARRIER TO TRADE
CUSTOMS VALUATION
THE SHOWDOWN
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GENEVA,47 – SEATLE,99 – CANCUN,03
ONE – TWENTY EIGHT – THIRTY TWO
ON GOING LIBERALIZATION
REGIONALISM VS MULTILATERALISM
DEVELOPED VS DEVELOPING
ONE WORLD, ONE LAW & ONE VOTE
DISPUTE SETTLEMENT BODY
THE FUTURE CHALLENGES
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UNITED WE WIN, DIVIDED WE LOOSE
STRATEGIC ALLIACES ARE REQUIRED
TECHNOLOGY EDGE; IS THE FUTURE
COMPARATIVE ADVANTAGE; IS A MUST
SME’s ARE THE ENGINE OF GROWTH
SERVICES RATHER THAN GOODS
SPECIAL & DIFFERENTIAL TREATMENT
SWOT Analysis
O
+ 10
IN WTO
• Integrated – Proactive
• DSB ( regulated )
• Employment ( Saudization )
• MKT Access – National Treatment
• FDI ( T & P ) – Services Upgrading
S
W
• Confined - Reactive
• Vulnerable - Undersized
• Unemployment
• Single Undertaking
• Stagnation
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OUT OF WTO
T
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A “COST-BENEFIT” ANALYSIS
SECURED AGAINST CHAOS
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SAUDIZATION
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TODAY, WE HAVE:
4.5M JOBS IN THE PRIVATE SECTOR,
WITH ONLY 10% SAUDIS
IN 2020, WE WILL HAVE:
10M JOBS WITH 75% SAUDIS
COMMITMENTS ON ICT 25% ONLY
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FOREIGHN DIRECT INVESTMENT
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EXPONENTIAL FDI INCREASE DUE TO:
1. ECONOMIC REFORM
2. RESTRACTURING STRATEGY
3. UP-TO-DATE LEGISLSTION
4. TRANSPARENCY & PREDICTABILITY
5. ENFORCEMENT & DUE PROCESS
6. COMPARATIVE ADVANTAGE
HEALTHY COMPETITION
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CONSUMER WIDER CHOICES
148 BORDERLESS MARKETS
NO UNILATERAL DECISIONS
AD, COUNTERVAILING & SAFEGARDS
RULES OF ORIGIN MEASURES
FREE TRADE AREAS ARRANGEMENTS
FULL INTEGRATION IN WORLD ECONOMY
THANK YOU
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